88R25838 SRA-F
 
  By: Spiller H.B. No. 3191
 
  Substitute the following for H.B. No. 3191:
 
  By:  Orr C.S.H.B. No. 3191
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the elections and operations of certain hospital
  districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 285.081, Health and
  Safety Code, is amended to read as follows:
         Sec. 285.081.  OPTIONAL FOUR-YEAR TERMS.
         SECTION 2.  Subchapter G, Chapter 285, Health and Safety
  Code, is amended by adding Sections 285.082 and 285.083 to read as
  follows:
         Sec. 285.082.  OPTIONAL THREE-YEAR TERMS. (a)  The
  governing board of a hospital district created under general or
  special law may, on its own motion, order that the members of the
  governing board are to be elected to serve staggered three-year
  terms if:
               (1)  the members of the governing board serve staggered
  four-year terms on the date the governing board enters the order;
  and
               (2)  Subsection (b), (c), or (d) applies to the
  governing board.
         (b)  This subsection applies to a governing board of a
  hospital district with five members. The election of board members
  in the even-numbered year following the date an order is entered
  under Subsection (a) in which three board members are to be elected
  shall be held as previously scheduled. Two of the members elected
  at that election shall serve three-year terms, and one of the
  members elected at that election shall serve a four-year term, to be
  determined by random draw. Board members elected in subsequent
  elections shall serve three-year terms.
         (c)  This subsection applies to a governing board of a
  hospital district with seven members. The election of board members
  in the even-numbered year following the date an order is entered
  under Subsection (a) in which four members are to be elected shall
  be held as previously scheduled. Two of the members elected at that
  election shall serve three-year terms and two of the members
  elected at that election shall serve four-year terms, to be
  determined by random draw. Board members elected in subsequent
  elections shall serve three-year terms.
         (d)  This subsection applies to a governing board of a
  hospital district with nine members. The election of board members
  in the even-numbered year following the date an order is entered
  under Subsection (a) in which five members are to be elected shall
  be held as previously scheduled. Two of the members elected at that
  election shall serve three-year terms and three of the members
  elected at that election shall serve four-year terms, to be
  determined by random draw. The election of board members in the next
  even-numbered year following the date an order is entered under
  Subsection (a) in which four members are to be elected shall be held
  as previously scheduled. Three of the members elected at that
  election shall serve three-year terms and one of the members
  elected at that election shall serve a four-year term, to be
  determined by random draw. Board members elected in subsequent
  elections shall serve three-year terms.
         Sec. 285.083.  RESIGNATION OF TERM. (a) A member of the
  governing board of a hospital district is considered to have
  resigned the member's position if the member is absent from five or
  more regularly scheduled board meetings that the member is eligible
  to attend in any 12-month period without an excuse approved by a
  majority vote of the board.
         (b)  A resignation under Subsection (a) is effective on the
  date of the fifth regularly scheduled board meeting at which the
  member is absent without an excuse approved by the board.
         (c)  The validity of an action of the board is not affected by
  the fact that the action is taken during a period in which a board
  member is considered to have resigned under Subsection (a).
         (d)  This section does not apply to a hospital district
  created under Chapter 281.
         SECTION 3.  Section 286.022(c), Health and Safety Code, is
  amended to read as follows:
         (c)  The petition may provide:
               (1)  the number of directors for the district, which
  number must be an odd number; [and]
               (2)  the method by which directors are to be elected,
  whether at large, by place, or by a combination of both, so that a
  specific number of directors are elected from each commissioner
  precinct and a specific number are elected at large; and
               (3)  whether directors will be elected to serve
  two-year or four-year terms.
         SECTION 4.  Section 286.025(a), Health and Safety Code, is
  amended to read as follows:
         (a)  The commissioners court shall give notice of the
  election by publishing a substantial copy of the election order in a
  newspaper with general circulation in the proposed district in
  accordance with Section 4.003, Election Code [once a week for two
  consecutive weeks].
         SECTION 5.  Section 286.041, Health and Safety Code, is
  amended to read as follows:
         Sec. 286.041.  BOARD OF DIRECTORS. The directors shall be
  elected at large, by place, or by a combination of both, in
  accordance with the petition prescribed by Section 286.021.
         SECTION 6.  Section 286.042, Health and Safety Code, is
  amended to read as follows:
         Sec. 286.042.  DIRECTOR'S ELECTION. (a) The initial
  directors shall be elected at an election to be held on the uniform
  election date [first Saturday] in May following the creation of the
  district.
         (b)  If the directors are elected at large for two-year
  terms:
               (1)  the appropriate number of candidates receiving the
  highest number of votes at the initial election of directors are
  directors for the district;
               (2)  the number of directors equal to a majority of the
  directors who receive the highest number of votes at the initial
  election serve for a term of two years; and
               (3)  the remaining directors serve for a term of one
  year.
         (c)  If the directors are elected by place for two-year
  terms:
               (1)  the candidate for a place receiving the highest
  number of votes for election to that place is a director for the
  district;
               (2)  a director elected to fill an even-numbered place
  at the initial election serves for a term of one year; and
               (3)  a director elected to fill an odd-numbered place
  at the initial election serves for a term of two years.
         (d)  If the directors are elected from commissioners
  precincts and at large for two-year terms:
               (1)  the number of candidates equal to the number of
  directors to be elected from each precinct who receive the highest
  number of votes from a commissioner precinct are directors for that
  precinct;
               (2)  the number of candidates equal to the number of
  directors to be elected at large who receive the highest number of
  votes from the district at large are directors for the district at
  large;
               (3)  a candidate elected from an odd-numbered precinct
  at the initial election serves for a term of two years;
               (4)  a candidate elected from an even-numbered precinct
  at the initial election serves for a term of one year;
               (5)  a candidate elected as the director from the
  district at large at the initial election serves for a term of two
  years; and
               (6)  if more than one director is elected at large, half
  of the directors elected serve two-year terms, and the other half
  serve one-year terms.
         (d-1)  If the directors are elected at large for four-year
  terms:
               (1)  the appropriate number of candidates receiving the
  highest number of votes at the initial election of directors are
  directors for the district;
               (2)  the number of directors equal to a majority of the
  directors who receive the highest number of votes at the initial
  election serve for a term of three years if elected in an
  odd-numbered year or four years if elected in an even-numbered
  year; and
               (3)  the remaining directors serve for a term of one
  year if elected in an odd-numbered year or two years if elected in
  an even-numbered year.
         (d-2)  If the directors are elected by place for four-year
  terms:
               (1)  the candidate for a place receiving the highest
  number of votes for election to that place is a director for the
  district;
               (2)  a director elected to fill an even-numbered place
  at the initial election serves for a term of one year if elected in
  an odd-numbered year or two years if elected in an even-numbered
  year; and
               (3)  a director elected to fill an odd-numbered place
  at the initial election serves for a term of three years if elected
  in an odd-numbered year or four years if elected in an even-numbered
  year.
         (d-3)  If the directors are elected from commissioners
  precincts and at large for four-year terms:
               (1)  the number of candidates equal to the number of
  directors to be elected from each precinct who receive the highest
  number of votes from a commissioner precinct are directors for that
  precinct;
               (2)  the number of candidates equal to the number of
  directors to be elected at large who receive the highest number of
  votes from the district at large are directors for the district at
  large;
               (3)  a candidate elected from an odd-numbered precinct
  at the initial election serves for a term of three years if elected
  in an odd-numbered year or four years if elected in an even-numbered
  year;
               (4)  a candidate elected from an even-numbered precinct
  at the initial election serves for a term of one year if elected in
  an odd-numbered year or two years if elected in an even-numbered
  year;
               (5)  a candidate elected as the director from the
  district at large at the initial election serves for a term of three
  years if elected in an odd-numbered year or four years if elected in
  an even-numbered year; and
               (6)  if more than one director is elected at large, half
  of the directors elected at large serve for a term described by
  Subdivision (4) for a candidate elected from an even-numbered
  precinct, and the other half serve for a term described by
  Subdivision (3) for a candidate elected from an odd-numbered
  precinct.
         (e)  After the initial election of directors, an election
  shall be held on the uniform election date [first Saturday] in May
  of each year or every other year, as applicable, to elect the
  appropriate number of successor directors for two-year terms or
  four-year terms as specified in the petition to create the
  district.
         SECTION 7.  Section 286.043, Health and Safety Code, is
  amended to read as follows:
         Sec. 286.043.  NOTICE OF ELECTION. Notice [Before the 35th
  day before the date of an election of directors, notice] of an [the]
  election shall be published [one time] in a newspaper with general
  circulation in the district in accordance with Section 4.003,
  Election Code.
         SECTION 8.  The heading to Section 286.044, Health and
  Safety Code, is amended to read as follows:
         Sec. 286.044.  APPLICATION FOR PLACE ON BALLOT [PETITION].
         SECTION 9.  Section 286.044(a), Health and Safety Code, is
  amended to read as follows:
         (a)  A person who wishes to have the person's name printed on
  the ballot as a candidate for director must file an application with
  the secretary of the board in accordance with Chapter 144, Election
  Code.
         SECTION 10.  Section 286.053, Health and Safety Code, is
  amended to read as follows:
         Sec. 286.053.  APPOINTMENTS TO STAFF. The board may:
               (1)  appoint to the staff any health care practitioners
  [doctors] the board considers necessary for the efficient operation
  of the district; and
               (2)  grant clinical privileges on a [make] temporary or
  emergency basis as [appointments] the board considers necessary.
         SECTION 11.  Section 286.078(b), Health and Safety Code, is
  amended to read as follows:
         (b)  The board may enter into a public work contract as
  authorized under Chapter 2269, Government Code [construction
  contracts that involve spending more than $10,000 only after
  competitive bidding as provided by Subchapter B, Chapter 271, Local
  Government Code].
         SECTION 12.  Section 286.101(f), Health and Safety Code, is
  amended to read as follows:
         (f)  [The election shall be held after the 45th day and on or
  before the 60th day after the date the election is ordered.] The
  election shall be ordered and notice of the election shall be given
  in the same manner as provided by Sections 286.024 and 286.025 for
  ordering and giving notice of an election authorizing creation of
  the district. Section 41.001(a), Election Code, does not apply to
  an election held under this section.
         SECTION 13.  Section 286.102(c), Health and Safety Code, is
  amended to read as follows:
         (c)  [The election shall be held not later than the 60th day
  after the date the election is ordered.] Section 41.001(a),
  Election Code, does not apply to an election ordered under this
  section.
         SECTION 14.  Section 286.129, Health and Safety Code, is
  amended to read as follows:
         Sec. 286.129.  SPENDING AND INVESTMENT LIMITATIONS. (a)  
  Except as provided by Sections [Section] 286.078(a), [and by
  Sections] 286.141, 286.144, and 286.145, and Chapter 315, the
  district may not incur a debt payable from revenues of the district
  other than the revenues on hand or to be on hand in the current and
  immediately following fiscal year of the district.
         (b)  The board may invest operating, depreciation, or
  building reserves only in investments authorized under Chapter
  2256, Government Code [:
               [(1)  bonds of the United States;
               [(2)  certificates of indebtedness issued by the United
  States secretary of the treasury;
               [(3)  bonds of this state or a county, municipality, or
  school district of this state; or
               [(4)  shares or share accounts of savings and loan
  associations organized under the laws of this state or federal
  savings and loan associations domiciled in this state, if the
  shares or share accounts are insured by the Federal Deposit
  Insurance Corporation].
         SECTION 15.  Section 1023.054(a), Special District Local
  Laws Code, is amended to read as follows:
         (a)  If a [A] vacancy occurs in the office of director, the
  remaining directors shall appoint a director [shall be filled] for
  the unexpired term [at the next regular election].
         SECTION 16.  Section 1070.111, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 1070.111.  CONSTRUCTION CONTRACTS.  A construction
  contract that involves the expenditure of more than $10,000 may be
  made only after advertising in the manner provided by Chapter 252,
  Local Government Code, or Subchapter B, Chapter 271, Local
  Government Code[, or Section 286.078, Health and Safety Code].
         SECTION 17.  The following provisions of the Health and
  Safety Code are repealed:
               (1)  Section 286.023(g);
               (2)  Section 286.025(b); and
               (3)  Section 286.044(b).
         SECTION 18.  This Act takes effect September 1, 2023.